The short answer
Since January 1, 2026, every company that funds Georgia lawsuits must register with the Department of Banking and Finance and give you five business days to cancel. It can never take more than your share of the recovery, and it cannot pay referral fees or control your case.
The rules at a glance
| Rule | What it means for you | Code section |
|---|---|---|
| Registration | A company must be registered with the Georgia Department of Banking and Finance to fund Georgia cases. | O.C.G.A. 7-10-2 |
| Five business days to cancel | You can cancel without penalty within five business days of signing or of receiving the money, whichever is later. | O.C.G.A. 7-10-6 |
| Recovery cap | The funder can never receive more than your share of the recovery after attorney fees and costs. | O.C.G.A. 7-10-4 |
| Nothing owed beyond your recovery | If your case recovers nothing, or not enough, you do not owe anything beyond your recovery. | O.C.G.A. 7-10-6 |
| No control of your case | The funder cannot direct your case, choose or change your lawyer, or decide on a settlement. | O.C.G.A. 7-10-4 |
| No referral fees | No one, including an attorney or law firm employee, can be paid for referring you to a funder. | O.C.G.A. 7-10-4 |
| No misleading ads | A funder cannot advertise false or misleading information about its products. | O.C.G.A. 7-10-4 |
| Complete written contract | You get a fully completed contract, with the required disclosures in bold above your signature line. | O.C.G.A. 7-10-6 |
Source: Georgia Senate Bill 69 (2025), signed April 21, 2025, effective January 1, 2026. This page explains the law in plain terms and is not legal advice. Ask your attorney about your own agreement.
How to cancel a Georgia funding agreement
The five business days start on the later of two dates: the day you sign, or the day you receive the money. To cancel, send a notice of cancellation to the funder and return the funds to the mailing address on the first page of your contract.
Your attorney can send the notice for you. Cancelling within the window carries no penalty and no further obligation.
How to check a funder before you sign
Ask for the funder's NMLS number and confirm it is registered as a Georgia litigation financier. Read the bold disclosures above the signature line, and make sure the contract has no blanks. Be wary of any offer that arrives through a paid referral, because Georgia now bans them.
Cherokee Funding II, LLC is registered with the Georgia Department of Banking and Finance under NMLS #1989400. See our Georgia disclosures.
Funding is not a loan
Pre-settlement funding is repaid only from a recovery, which is why Georgia treats it as litigation financing rather than lending. In Ruth v. Cherokee Funding (2018), the Supreme Court of Georgia held that funding agreements repaid only from a recovery were not loans under the state's payday lending and industrial loan laws.
Questions about the Georgia law
When did Georgia's lawsuit funding law take effect?
The consumer rules and registration requirement in Senate Bill 69 took effect on January 1, 2026. The bill was signed on April 21, 2025.
Is it five days or five business days to cancel?
Five business days. The window starts on the later of the day you sign the contract or the day you receive the money.
Can my lawyer be paid for referring me to a funder?
No. Georgia bans funders from paying commissions or referral fees to anyone, including attorneys and law firm employees, for referring a plaintiff.
What if my case loses?
If there is no recovery, or not enough to pay the funder in full, you do not owe anything beyond your recovery. The law requires this disclosure in every Georgia contract.
Can a funder tell me to settle?
No. All decisions about your case and any settlement stay with you and your attorney. You can also change attorneys without any fee or penalty under the funding agreement.
Have an open case in Georgia?
We review it with your attorney before any offer.
See if a case qualifies